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question 15

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Use the table for the question(s) below.
The founders and owners of a private company have funded it through the following rounds of investment:
Use the table for the question(s) below. The founders and owners of a private company have funded it through the following rounds of investment:    The owners decide to take the company public through an IPO,issuing 1 million new shares.Assuming that they successfully complete the IPO,the net income for the next year is estimated to be $5 million.The price of shares is set using average price-earnings ratios for similar businesses of 17.0. -What portion of the company will be owned by the angel investor after the IPO? A) 12% B) 16% C) 22% D) 30% E) 33% The owners decide to take the company public through an IPO,issuing 1 million new shares.Assuming that they successfully complete the IPO,the net income for the next year is estimated to be $5 million.The price of shares is set using average price-earnings ratios for similar businesses of 17.0.
-What portion of the company will be owned by the angel investor after the IPO?

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